Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your investment professional, who has a fiduciary responsibility to you, is helping you manage the money you have invested in a closed-end investment fund. They

Your investment professional, who has a fiduciary responsibility to you, is helping you manage the money you have invested in a closed-end investment fund. They note that many of the values of the stocks in the fund have gone up by double-digit percentages in the last few months. Subsequently, the fund, which you purchased for $25/share, is now valued at $32.5/share. Which source of potential return does this example demonstrate? a. The premium on the fund gets larger, or the discount gets smaller. b. The value of assets in the fund increases, and the fund sells the assets and distributes to investors. c. The NAV of the fund increases, which causes its market value to increase. d. Dividends and/or interest is received by the fund that distributed to the holders of the investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions